Petrocorp in Aust. oil exploration

Press, 4 November 1986, Page 23

Petrocorp in Aust. oil exploration

PA Wellington Petrocorp has expanded its exploration activities overseas for the first time by participating in a joint exploration in Australia. The chairman of Petrocbrp, Mr F. W. Orr, said Petrocorp had acquired a one-third interest in the venture and would contribute about S6M a year for the next three years to exploration throughout Australia. The other participants are Northern Michigan Exploration Company (Nomeco) and Command Petroleum NL. The joint venture is

concluding the acquisition of various petroleum interests from Coolawin Resources, Ltd. Subject to the finalisation of agreements, the joint venture equities will be: Petrocorp 32.9 per cent, Nomeco 31.2 per cent, Command 30.0 per cent, Coolawin 5.9 per cent. Mr Orr said Petrocorp’s participation in Australia would complement the company’s exploration in New Zealand. Petrocorp has applied to the Ministry of Energy for permits in various parts of New Zealand and is progressing with its drilling in Taranaki. “We would expect to bid successfully for new acreage in Taranaki when the current prospecting licence there expires in July next year,” Mr Orr said. After the intensive exploration in recent years, Petrocorp perceived the risks and finding costs in New Zealand to be increasing, he said.

The company had been investigating opportunities to participate in promising overseas regions to explore for resources as well as to establish a bench-mark against which to measure the risks of exploration in New Zealand. Australia had been identified by independent sources as one of the better prospecting regions in the Southern Hemisphere. It was attractive also because of its proximity and similarities. Petrocorp enjoyed a good relationship with one of its venture partners, Nomeco, which was a participant in the onshore Taranaki licence area, PPL 38034. Nomeco, a subsidiary of the Consumers Power Company of Michigan (a gas utility similar to Petrocorp) will manage the new Australia joint venture. Mr Orr described Petrocorp’s participation as a modest overseas debut for the company. Petrocorp’s contribution of about S6M a year compared with S3OM the company spent last year.